Key Forex and Crypto fundamentals this week


Here are the key Forex and Crypto fundamentals for the upcoming days after Brexit will remain the main focus for the investors.

21 October 2019, AtoZMarkets – This week will be relatively quiet on the data front with just important releases. The last policy meeting of Mario Draghi at the helm of the European Central Bank might make the week interesting. The Swedish and Norwegian central banks will also be setting monetary policy besides the ECB Meeting. However, Brexit will remain the main focus for the investors as a rejected deal could greet traders.

Forex and Crypto Fundamentals for 21-25 October 

UK Parliament votes on Brexit

The UK and the EU have reached an agreement on Saturday. Now it is time for parliament to have its judgment. Currently, UK Prime Minister Boris Johnson is working hard to assemble a majority that Theresa May failed earlier. If it passes, the pound could rise along with the euro. On the other hand, the commodity currencies and also USD/JPY would be higher.

A failure would open the possibility for elections, but also to a hard Brexit.

Elections in Canada

The Election will be held on Monday and the result will publish early on Tuesday. The current Prime Minister Justin Trudeau seeks another term at the helm and faces a close fight with Conservative leader Andrew Scheer. The Canadian Dollar will probably be comfortable if either leader achieves a majority in the 338-seat parliament. Otherwise, the Canadian Dollar may struggle if neither party wins a majority.

German IFO Business Climate

On Tuesday, the No. 1 giant in the continent’s largest economy has recently shown a minor positive momentum after several months of downfalls. There is a possibility that the 7,000-strong survey may remain at a similar score to 94.6 like September.

US Existing Home Sales

On Tuesday, the most transactions in the housing market are of second hand and existing homes. The annual sales volume has increased in August to 5.49 million. There is a possibility of another rise in the figures for September as the situation has improved.

Euro-zone PMIs

Euro-zone PMI’s will be released on Thursday. The all-European manufacturing PMI became 45.6 in September with the services fell to 52. Currently, the Markit’s forward-looking Purchasing Managers’ Indexes (PMIs) is on a falling trend due to the rising fears of a possible recession.  The all-important manufacturing sector of Germany has become weakest, with a drop to 41.4 points in September. The down growth of the industrial sector drags services down with it.

A further fall will indicate that the economic weakness might extend into the fourth quarter.

ECB rate decision

ECB Interest rate decisions along with the press conference, will be held on Thursday. Currently, there is no possibility to change its policy by the European Central Bank.

Back in September, ECB President Mario Draghi indicated a controversial decision to cut rates. He also wanted to restart the Quantitative Easing (QE) program Bond-buying, at a volume of €20 billion per month. In October, at his last meeting, he might be dedicated to defending his legacy.

US Durable Goods Orders

On Thursday, the Investment has been one of the weaker spots of the economy and the September data will provide a serious indication for the Gross Domestic Product (GDP) in the third quarter. Both core & headline orders had advanced in August after some unimpressive figures. However, there is a possibility of a drop now.

US New Home Sales

On Thursday, US new home sales will indicate more about economic activity. In August, there was a leap in the volume of annualized sales at 713,000. There is a possibility of a drop that may be recorded in September.

Crypto weekly outlook – ETHUSD, BCHUSD, LTCUSD

The majority of the cryptocurrencies are facing downside pressure from the last week, which may continue this week after some correction. For bullish sentiment this week, the price need strong intervention by buyers.

ETHUSD Analysis

Ethereum is bullish on Monday at the Asian session. The intraday chart rates show volatility and a strong bullish trend. The bullish action comes from the support at the 23.6% Fibonacci retracement level of the last swing high of $224.94 and a swing low of $152.50.

This week the price is expected to extend the upward correction $182.50 before a further decline. 

BCHUSD Analysis

Bitcoin Cash is on a bearish trend started from $520.00 from 25 June 2019. After a correction between 18 July to 18 September, the price has started to continue the bearish momentum. 

This week, the price is expected to continue the correction and then may fall to $175- the majority of technical indicators support $174 zones as the price. 

LTCUSD Analysis

Like Bitcoin Cash, LTCUSD is also showing a correction in a downtrend. On the intraday chart, the price is expected to move to the resistance of the current correction at $60.0 and any bullish rejection on H4 or D1 will indicate further selling possibility in LTCUSD. 

What is your opinion on key Forex and Crypto fundamentals for this week? Let us know in the comment section below. 

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